Leeds warehouse sold in £14.75 million deal

An industrial property in Leeds has changed hands in a multi-million-pound deal that strengthens investment activity in the city’s logistics market.

An institutional investor has acquired a 156,681sq ft warehouse and office complex on Oldfield Lane in Wortley for £14.75 million. 

The site, which spans ten acres and comprises a large single-storey warehouse with an attached two-storey office, supported by a detached office building offering canteen, meeting and welfare facilities, as well as a substantial hardstanding yard and a 139-space car park, was purchased with advice from GV&Co’s specialist investment division. 

It was sold by Bidwells on behalf of a retained client, a Cambridge college, reflecting a net initial yield of 6.97 per cent.

The property is let to CarnaudMetalbox Engineering, which designs and manufactures machinery, trackwork and tooling used in global food and drink can production, on a recently agreed long-term reversionary lease. 

Daniel Walker, from GV&Co, said: “This is a high-quality industrial property that has benefitted from an extensive £7.7million refurbishment programme in recent years, which included a new roof and cladding as well as major improvements to the heating, air conditioning, ventilation and lighting systems.

“When this is combined with a longstanding tenant, that has been a market leader in its sector since the 1930s, and is clearly committed to investing in its premises, it made it a highly compelling investment opportunity that fits seamlessly into our client’s existing industrial property portfolio. 

“We’re therefore very pleased to complete this deal on their behalf.”

Richard Walden, from Bidwells, added: “The sale of CarnaudMetalbox Engineering on Oldfield Lane attracted strong competition from a wide range of investors. 

“Having recently re-geared their lease, the tenant demonstrated its commitment to the premises. 

“Coupled with a long unexpired term, excellent covenant and attractive rent review mechanism, this resulted in a fiercely contested bidding process, as industrial buyers demonstrated their confidence in the Leeds industrial market with a number of parties bidding ahead of the quote price.” 

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